Increased Privacy with Syscoin 2.1 – Direct ZCash Payment Support

Syscoin 2.1 will have support for direct ZCash (ZEC) payments in the same way that Syscoin 2.0 has support for direct Bitcoin payments. Users will be able to purchase items by paying the appropriate peg-converted rate of ZCash directly to the seller’s designated Syscoin address. Once received the seller then confirms the funds are present on the ZCash blockchain/network and the transaction is then marked as completed on the Syscoin network.

Because Syscoin addresses are compatible with ZCash Transparent addresses we can offer ZCash support with complete multisig support to allow for optional Syscoin escrow functionality. A merchant has the ability to select a combination of payment options from a list of SYS, BTC or ZEC. Once a buyer tries to buy the offer they will see the payment options available. Once they select ZEC, a Transparent ZCash address will be generated which uses the same private key as the merchant’s Syscoin address. The buyer would pay from a private ZCash address to preserve anonymity and the seller would import their private key (at a random time in the future) into their ZCash wallet to claim their funds, and send those funds into an input of a JoinSplit transaction to store them in a private ZCash address, creating a JoinSplit sandwich.

The JoinSplit sandwich can be summarized as follows z-addr -> P2SH t-addr -> z-addr which provides the maximum amount of privacy with multisig support. All signing of ZCash transactions within the Syscoin escrow service happens on the Syscoin network and is posted onto the ZCash network upon escrow completion. This offers great usability within a trustless and decentralized payment design.

More details to come on privacy preserving payments within the Syscoin marketplace on our upcoming Syscoin 2 whitepaper upon release of 2.1 core.